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In the past year, our company has undergone significant evolution, expanding our services and integrating new internal systems. This period has required retraining and adaptation.
Traditionally, major changes to businesses occurred once every five or ten years. However, due to advancements in artificial intelligence, economic uncertainty, and digital transformation, businesses now need to pivot and adapt more frequently. Global spending on digital transformation is projected to reach $3.4 trillion by 2026, with 64% of organizations needing to establish new digital businesses to remain competitive in 2024 and beyond.
While many entrepreneurs and business leaders stress working “on” the business rather than “in” the business, having a comprehensive understanding of your company from the ground up can offer significant advantages. As the current president and CEO of my company, I have worked in every aspect of my field, from the warehouse to driving a truck, providing me with a valuable perspective on change management.
Related: 3 Ways Change Leaders Prevent, Minimize and Manage (or Create) Resistance to Change
Seek to understand workflows before you transform
Earlier in my career, I witnessed a company hiring outside consultants to revamp operations to comply with new customs regulations without consulting over 75% of its frontline workers. This led to a messy implementation that resulted in storage fees, operational issues, project delays, and low employee morale. The lack of internal consultation cost the company significant financial and operational setbacks.
When implementing significant changes, involving frontline employees is crucial. Frontline workers often feel disconnected from leadership, with only 23% feeling included in change-related decisions. This exclusion can fuel resistance and disengagement, as 74% of employees believe leaders should understand reasons for resistance to foster collaboration.
By understanding the daily responsibilities of frontline workers and considering how changes will affect them, businesses are more likely to achieve buy-in, internal advocacy, and make necessary plan adjustments.
I have observed businesses making the critical error of imposing changes from the top down without consulting their teams, leading to staff and client turnover and negative impacts on culture and morale.
Related: Rapid Business Expansion Can Be a Good Thing — But It Comes With Challenges. Here’s How to Make This Growth Sustainable.
Your frontline employees drive your bottom line
Implementing changes in a business is often aimed at improving profit margins. However, leaders frequently overlook the impact of entry-level workers on the bottom line. For instance, high turnover of entry-level staff costs Amazon $8 billion annually.
To successfully implement changes, involving representation from every department, including frontline employees, in discussions is essential. It’s beneficial to include vocal naysayers, as they may offer valuable feedback and can become strong internal advocates for change.
Double down on education and training
I recall promoting a frontline employee to a leadership role despite her initial reservations about our operations. She excelled in the role after undergoing change management education and training, becoming a champion for improving departments she once criticized.
Providing education and training on embracing and adapting to change creates stronger leaders and reduces turnover, boosting productivity. As leaders, attending training sessions ourselves emphasizes the importance of continuous learning and understanding the practical implications of changes on our teams.
Change is challenging, but developing skills to prepare and adapt to it builds stronger businesses with resilient teams. Engaging with team members at all levels, especially frontline employees, can provide valuable insights and perspectives crucial for successful company transformation.
